Stocks

Selling Kr1

By Deep Value investments @DeepValueInv

 

Exited KR1.  The price went up a bit from my entry at 3.75.  Coupled with this, the price of the underlying crypto fell quite a lot – 20-30% following China’s ban on ICO’s.  Nothing like good timing – and this was nothing like good timing….

This left it at a discount of about 10% at one point, so I wasnt inclined to hold.  There has also been quite a bit of selling of KR1 – today all trades were pretty much sells…

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My sale was omething of a miscalculation as their holdings have since rebounded – discount is now about 25%…  Still now not attractive to me – but if holdings go up another 20% in a day – as crypto tends to, it might be.  There is a margin for error – I dont know whether management sold at the top – so this thing is worth £10m if they sold at the bottom so its worth 6, or not at all…

I’m not a true believer in KR1’s underlying crypto – though I do belive there may be a place for it more generally.  I was holding it somewhat based on a greater fool theory – though I could be wrong.  I think any bubble may have much further to run.

I will get in again if it trades at a 50-60% discount – subject to the underlying crypto sentiment.  I still believe it could get to a premium – but not if the underlying holdings drop 33% for no real reason over a couple of days.